Gold loan is sanctioned by accepting the gold ornaments of the customer as pledge. Personal loan is sanctioned on the basis of source of income and repayment capacity of an applicant. It is true that Gold loans, like personal loans or credit card borrowings, are often used for short term household requirements.
Gold loans for less than Rs 50000/- also available for rural markets. Instant liquidity: Enjoy any time liquidity on your loan against gold. It can be repaid any time without any foreclosure charges. Foreclosure charges are to be paid when a loan is closed before the tenure is completed.